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Friday, October 31, 2008

NJ to vote on limiting borrowing

New Jersey voters will have a chance in Tuesday's election to put new holds on the state's credit cards.

A public question on the ballot, if approved, would require the state government or a public authority to get voter permission before they do any more borrowing. There would still be some exceptions, however, when dedicated funds are set aside to pay for the new debt.

Supporters, including members of both parties, say the plan will put a clamp on borrowing that has put the public on the hook for $32 billion of debt. Voters technically have to approve state borrowing already, but for years New Jersey government has relied on bonding through state authorities, which don't have the same restriction. Only a tiny fraction of the state's debt has been OK'd by the public. This proposed amendment to the state Constitution could change that.

Critics, however, say the new amendment includes large loopholes that will still allow big-time borrowing, particularly since the state's nearly $13 billion in income tax revenue might be considered a dedicated fund, since it technically exists to reduce property taxes, a mission which could be defined to include any number of projects.

Others say borrowing is needed for important projects, such as schools, and should not be left to chance in a public vote.

We'll have the details on the pros and cons in a story this weekend online and in the Inquirer.

Click here for Philly.com's politics page.
Posted by Jonathan Tamari @ 4:00 PM  Permalink | 1 comment
Comments   
  • 0 like this / 0 don't   •   Posted 5:42 PM, 10/31/2008
    "Others say borrowing is needed for important projects, such as schools, and should not be left to chance in a public vote."....Names please! Who said this? See how it works New Jerseyians? Its not your money, its the states money and you have no say in how it is spent. Enjoy the peoples republic of New Jersey.
    — E Plebnista


1 comments
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Garden State Grapevine covers news in South Jersey and Trenton.

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